Sydney housing price easing noted as RBA holds at September 2017 meeting

Sydney housing price easing noted as RBA holds at September 2017 meeting
Sydney housing price easing noted as RBA holds at September 2017 meeting

The RBA cash rate decision came out at 2.30pm today - and rates were held again.

The bank's last move saw it go to 1.5 percent at the August 2016 meeting, so rates have been held steady for 14 meetings.

It is not the longest run of steady rates as there were 16 meetings (inclusive) between their August 2013 meeting and December 2014 where they held at 2.5 percent. There was another run of 16 meetings between July 2002 and October 2003 where rates were held at 4.75 percent.

The board noted easing Sydney house prices.

The board noted growth in housing debt has been outpacing the slow growth in household incomes for some time.

"To address the medium-term risks associated with high and rising household indebtedness, APRA has introduced a number of supervisory measures.

"Following some tightening in credit conditions, growth in borrowing by investors has slowed a little recently," the board noted.

In the housing market, conditions continue to vary considerably around the country.

Housing prices have been rising briskly in some markets, while in others they have been declining.

In Sydney, where prices have increased significantly, there have been further signs that conditions are easing.

In the eastern capital cities, a considerable additional supply of apartments is scheduled to come on stream over the next couple of years.

Rent increases remain low in most cities.

 

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of our authors. Jonathan has been writing about property since the early 1980s and is editor-at-large of Property Observer.

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Mortgages Rba/philip Lowe

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